JOHANNESBURG - App-based taxi service, Uber, has welcomed Cabinet's move to approve a bill that will regulate the service in South Africa saying it's a step forward, and something it has been pushing for, for more than two years.

The service can now be regulated by authorities in line with other metered taxi operations.

Uber uses a mobile app to determine the cost of the trip which has made regulating the service difficult in the past.

Last year, Uber drivers were intimidated by metered taxi drivers in several cities, who were unhappy that they had to share the same routes and were losing customers.

Uber South Africa's Alon Lits said, "We see it as a positive thing for the industry as a whole and removes ambiguity and our regulation is moving forward to a place where it starts to embrace new technology."